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True North
TNO, +0.85%
said it earned $4.9 million, or 10 cents per share, excluding a one-time gain, vs. $3.6 million, or 8 cents, in the year-ago period. A survey of analysts by First Call said the company was expected to earn 9 cents per share.

Revenue was $303.4 million vs. $287.8 million in the year-ago period.

Shares of True North dipped 5/8 to 25 7/8 on Thursday.

Merrill Lynch analyst Lauren Rich Fine said the company's profit number was "marginally better" than expected, but True North's organic growth of only 1.4 percent is well below the double-digit numbers of other big ad agencies.

Bell, who took over for retired Bruce Mason on March 31, said he wants to get the ad giant's operating margin up to 12 percent and boost revenue growth.

"First quarter earnings increased substantially, but we are certainly not satisfied," Bell said in a statement. "We are taking decisive steps to achieve these goals and we are intensifying our efforts throughout True North."

Operating income decreased 5 percent to $11 million, including $1.6 million in employee severance costs associated with staff reductions.

Excluding the employee severance costs, operating income would have increased 9 percent with a 4.2 percent operating margin vs. 4 percent in the year-ago period.

"Looking around True North, I'm impressed with the talent and professional capabilities," he said. "Now, the challenge is to bring these strengths together and mount a concerted effort to drive organic growth, while filling in the business and geographic gaps through selective acquisitions."

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